MCQ
upsc-p1-economy-taxation-gst MCQ - Practice Questions with Answers
Solve 7 upsc-p1-economy-taxation-gst questions for RAS/RPSC preparation.
Practice questions
Q1Match List I with List II and select the correct answer using the code given below. List I A. Kelkar Task Force B. VKC Footsteps C. Mohit Minerals D. Income-tax Act, 2025 List II 1. GST Council recommendations have persuasive value 2. Tax simplification and a wider base 3. Simplified direct-tax framework effective from 2026-27 4. Statutory formula restricting refund of unutilised input tax credit upheld
The Kelkar Task Force promoted simplification and a wider tax base. VKC Footsteps upheld the statutory refund formula in inverted-duty cases. Mohit Minerals treated GST Council recommendations as persuasive, and the Income-tax Act, 2025 provides the simplified framework effective from 2026-27. Therefore option D is correct.
Q2Consider the following two statements: Statement I: A zero-rated supply may retain a refund or input tax credit route under GST law. Statement II: An exempt supply generally blocks or reverses input tax credit. Which one of the following is correct?
Both statements are correct, but they describe distinct credit outcomes and Statement II does not explain why Statement I is true. Zero-rated supplies may preserve credit or refund routes, whereas exempt supplies generally interrupt the credit chain.
Q3Arrange the following constitutional developments in chronological order, from the earliest to the latest: A. Article 268A was inserted for service tax. B. Article 268A was omitted and the constitutional GST framework was created. C. The GST Compensation to States Act was enacted. D. The Supreme Court delivered its judgment in Mohit Minerals. Select the correct answer using the code given below.
The 88th Amendment inserted Article 268A in 2003. The 101st Amendment omitted it and created the GST framework in 2016. The compensation law followed in 2017, and Mohit Minerals was decided in 2022. Thus option B gives the correct chronology.
Q4Consider the following two statements: Statement I: Basic customs duty ordinarily remains outside the GST input tax credit chain. Statement II: Integrated GST levied on imports is integrated into the GST credit chain. Which one of the following is correct?
Both statements are correct, but the treatment of integrated GST does not explain the exclusion of basic customs duty from ordinary GST credit. They are separate components of import taxation with different credit consequences.
Q5Consider the following statements about taxation and revenue: 1. In a direct tax, the legal incidence and final economic burden broadly rest on the same person. 2. The burden of an indirect tax can be shifted through prices. 3. Tax buoyancy describes the response of tax revenue to growth in income, output or the tax base. 4. A rise in GST collections necessarily proves an equal rise in real economic growth. Select the correct answer using the code given below.
Statements 1, 2 and 3 are correct. Direct and indirect taxes differ in whether the burden broadly remains with the legal payer or can travel through prices. Tax buoyancy concerns revenue responsiveness. Statement 4 is incorrect because GST collections can also change with inflation, imports, compliance, rates, refunds and settlement timing.
You've seen 5 of 7 sample questions
Unlimited practice on upsc-p1-economy-taxation-gst comes with the RAS Test Series + Practice pack or Gate Pass.
More questions
6With reference to the GST credit chain, consider the following statements: 1. Eligible input tax credit may be set off against output tax liability, subject to statutory conditions. 2. Exempt supplies generally preserve input tax credit in the same manner as zero-rated supplies. 3. An inverted duty structure can cause input tax credit to accumulate. 4. Input tax credit is broad but not absolute because some categories face blocked-credit restrictions. Select the correct answer using the code given below.
7Arrange the following developments in chronological order, from the earliest to the latest: A. Kelkar Task Force recommended tax simplification and a wider base. B. Azadi Bachao Andolan distinguished lawful treaty-based tax planning from sham transactions. C. Jindal Stainless upheld non-discriminatory entry taxes. D. The Income-tax Act, 2025 provided a simplified direct-tax framework for 2026-27. Select the correct answer using the code given below.